Increased Repayments On Spanish Mortgage Products
Friday, April 7, 2017 @ 9:59 AM
Our Spanish Legal Team in San Pedro have reported a worrying trend in some Spanish mortgage products. Many of these products are now moving away from their 10-year interest only period and moving to repayment. The issue we are finding is the jump in payment amounts is very substantial. So substantial that repayments are have increased up to 3 times the initial amount.
We have come across investors who's mortgages are moving from interest-only to repayment, the jump in the payment amount was €1,000. More worryingly, this repayment is now commencing when the many are reaching retirement age. This highlights the loose lending practices of lenders pre 2008.
Many ask can I leave the keys to my property with the lender and walk away. You can, BUT the risk involved is very high. By doing this you are putting your home assets in jeopardy. In some cases, the banks can react negatively and aggressively and place a charge on your own home in the UK or Ireland. It is essential that should you no longer wish to maintain and keep your Spanish property that you amicably liaise with the lender. Seek specialists in European Property, there are numerous experts who can advise and liaise on your behalf.
If your mortgage rate is changing and your monthly repayment in Spain increasing and you wish to dispose of the issue then see the correct help.
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